Comment on Portugal's new govt faces bailout pressures

Portugal's new govt faces bailout pressures

share: digg facebook twitter Social Democrat leader Pedro Passos Coelho scored an emphatic win at the ballot box Sunday, with his party collecting 39 percent of the vote to 28 percent for the second-placed Socialist Party, which had governed for the past six years. Despite upcoming further tax hikes, public sector pay freezes, and pension and welfare cuts, almost 80 percent of voters supported one of the three parties that have backed the bailout conditions. [...] a deal would ensure him an absolute majority in parliament, which is crucial for the approval of debt-reduction policies and broad social and economic reforms. The new government will have to move quickly on spending cuts and economic reforms before its first report in July to inspectors from Portugal's European partners and the International Monetary Fund, which put up the money for the bailout.

 

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